A 52-basis-point yield surge since August exposes accrual-dependent earnings across the tape.
With the 10-year at 5.18% and the 2-year at 4.87%, equity holders are no longer being compensated to own businesses whose reported earnings are running ahead of cash generation.
Eight of twelve sectors fell on September 24, with Industrials and Utilities the worst performers, as the 10-year Treasury yield climbed 7 basis points to 5.18% — extending a 52-basis-point rise since late August that is now compressing equity multiples across duration-sensitive names.
Since the last briefing
Yesterday's position held that rising yields were punishing duration and consumer credit simultaneously, and that the committee was net bearish on MA with the consumer discretionary volume deterioration acting as real-time confirmation of the accrual
What drove the session and how it transmitted, the exposure table by persistence grade, where the committee disagreed, its verdict and weighting, and the falsifiers that would prove it wrong.